The labor market, the yield curve, inflation and a stock-market selloff are poised to force the Federal Reserve into a rate cut sooner than the market is currently pricing. In markets, it pays to remember that things take longer to happen than you think they will, and then they happen much faster than you thought they ever could. It was only two weeks ago that the market was expecting up to another four rate hikes. Now it’s effectively pricing the end of the rate-hike cycle, and the first cut by the end of the third quarter. But there are ..read more

The European Union has agreed to extend a cap on natural gas prices for power generation in Spain and Portugal until the end of the year.  Spanish Energy Minister Teresa Ribera explained that the decision will protect Spanish and Portuguese consumers. While the decision is still pending endorsement by the Commission, it has expressed explicit support for the move. According to an Energy Ministry spokesperson, "The agreement enables the extension of this temporary mechanism that will cap the gas price at an average of 55 euros ($59.48 ..read more

Via AG Metal Miner China’s aluminum production faces a “touch and go” situation once again. In this case, the problem is mainly due to a power supply crisis in the southwest area of the country. The Yunnan province, the aluminum manufacturing hub of southern China, is reducing production of the metal due to a severe water shortage. This shortage has, in turn, hampered the area’s hydroelectric power supply. Currently, the impact this will have on the global aluminum price remains unknown. According to reports ..read more

Yesterday we reported about the Energy Transfer LP takeover of midstream operator Lotus energy and the Brookfield Renewable Partners acquisition of Australia’s Origin Energy for $10 billion. Today, the M&A action continues upstream in Canada where Crescent Point Energy (CPG.TO) has agreed to acquire $1.24 billion ($1.7B CAD) worth of oil and gas assets in Alberta’s Montney formation from Spartan Delta Corp. (SDE.TO). According to Crescent Point CEO Craig Bryska, the Montney formation is one of Canada’s most attractive oil ..read more

BP and the Abu Dhabi National Oil Company (ADNOC) have bid to acquire a 50% stake in Israel's NewMed Energy, an offshore natural gas producer. The proposal, valued at roughly $2 billion, could signify a significant shift in relations between the Middle East and Israel. The deal holds the potential to bring considerable investment into the Israeli energy sector. With this agreement, further cooperation between Israel and the United Arab Emirates could also be on the table. NewMed Energy has been operating since 2017 and has developed several ..read more

Shell is currently deliberating how to reconcile energy security with climate targets in a new strategy expected in June, with all options on the table, the supermajor’s chief executive Wael Sawan told The Wall Street Journal in a recent interview. Whatever the decision of Sawan, other top executives, and the board, Shell is likely to disappoint investors, environmentalists, or both.   “I think the heat will come no matter what I do,” Sawan, the new CEO who took over from Ben van Beurden on January 1, told the Journal.  ..read more

Four weeks of protests against the pension reform in France have crippled supply to French refineries and refinery operations as workers join the nationwide industrial action, while prices for European crude grades are depressed due to low French demand. Earlier this month, French President Emmanuel Macron pushed through with a controversial pension reform without a vote in Parliament under a parliamentary clause known as 49:3. The pension reform proposes to raise the retirement age in France by two years to 64. The strikes in France against the ..read more

A new report from the International Renewable Energy Agency (IRENA) has found that we need to increase our annual investments in renewable energy by four times to meet climate goals.  According to IRENA, global investments in renewable energy technologies must exceed $5 trillion annually to align with the Paris climate accord's commitment to limiting temperature increases to 1.5 degrees Celsius above pre-industrial levels. Last year, investments in renewable energy reached a record of $1.3 trillion, but that is insufficient ..read more

The European Union member states on Tuesday approved an emissions regulation under which the bloc will end sales of new carbon dioxide-emitting cars and vans in 2035. The new rules target 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels, as well as 100% CO2 emission reductions for both new cars and vans from 2035, the EU said today.    The landmark deal was made possible after Germany – the biggest economy, the biggest car market, and the biggest car manufacturer – sought ..read more

Oil prices jumped on Monday as a disruption to Kurdistan's oil exports refocused the market on fundamentals. As oil prices continue to recover from the sentiment-driven crash a couple of weeks ago, there are plenty of catalysts ahead that could push prices higher.Investor Alert: Whether you are new to the oil and gas industry or an energy market veteran, you will regret not signing up for Global Energy Alert. Oilprice.com's premium newsletter provides everything from geopolitical analysis to trading analysis, and all for less than a cup of ..read more